Decentralized finance, or DeFi, has brought about a paradigm shift in the world of finance by offering an ecosystem of financial applications built on blockchain technology. By leveraging decentralized networks, smart contracts, and cryptocurrencies, DeFi has transformed traditional financial services, making them more accessible, transparent, and secure. These innovations have enabled a range of services, such as lending, borrowing, asset management, and insurance, to be provided without the need for intermediaries like banks or financial institutions.

Over the last couple of weeks, bitcoin has been enjoying a well-deserved bull run, characterized through rapid price increases within a short timeframe. During the last 30 days, the cryptocurrency has managed to surpass its previous all-time high of $20,000, thereby establishing a new record of $41,940. The market was quick to celebrate, gasping in awe.

Fuelling the Bull Run

The bull run was fuelled by an overflow of capital deriving from institutional investors, and further consolidated through ongoing retail investments. Many analysts warned that this was a bubble and that a price correction was imminent, whereas others were firm in their belief that the bull run was only getting started.

At this point in time, market data showcases that bitcoin is going through yet another bull run. In fact, it managed to surpass most of its recent yearly records, thus getting incredibly close to its previous all-time high of $20,000.

Right now, bitcoin is trading a little above $18,600. It is expected that this bull run will not end up in a massive correction that crashes the price and leads to another bear market. Things are drastically different this time around, and as part of this article, we will explore the main reasons behind bitcoin’s massive uptrend. 

Despite the worldwide economic slowdown caused by the Covid-19 pandemic, it seems like the cryptocurrency market is entering a new phase of economic stimulation, price increases, and overall market interest.

This statement is backed by a statistical report released by Apptoppia, according to which a record-breaking number of cryptocurrency wallet app downloads were logged during July 2020. With this in mind, 3.5 million wallets were downloaded to mobile devices during this month, which is 81% more when compared to July 2019. Furthermore, throughout this year, the number of active digital currency users increased by approximately 110%.

For the sake of comparison, app wallet downloads averaged about 2 million during the last year.